Market Insider

Pitney Bowes tanks 18% after earnings miss

Source: Pitney Bowes

Shares of Pitney Bowes plunged more than 18 percent on Tuesday after the company reported an earnings miss.

Pitney Bowes reported earnings of 44 cents per share for the third quarter, missing Wall Street predictions of 46 cents per share, according to consensus from Thomson Reuters. The company also said that it expects to be at the low-end of its annual guidance range for revenue and adjusted earnings per share for 2016.

The press release additionally shared its third quarter revenue of $839 million, well short of analysts' estimates of $851.8 million, according to Thomson Reuters consensus.

In the statement, CEO Marc Lautenbach acknowledged the revenue miss and remained positive for the fourth quarter.

"While we continue to make progress in building out our partner channel in our Software Solutions business by adding new Regional System Integrators and Location Intelligence partners in the third quarter, license revenue fell short of our expectations," Lautenbach said. "That said, we are confident that the actions we have put in place in the third quarter will begin to yield better results in the fourth quarter and throughout 2017."

The company closed on Monday at $17.84 per share, before it released its third quarter earnings report.

Correction: Pitney Bowes shares declined 18 percent on Tuesday after the company released quarterly results. A previous version of this article misstated when the company reported earnings.